SBI inks $165 million LoC with World Bank to promote rooftop solar projects – EQ
In Short : The State Bank of India (SBI) has signed a $165 million Line of Credit (LoC) with the World Bank. This financial arrangement is likely aimed at promoting rooftop solar projects, signaling a collaborative effort to boost renewable energy initiatives and sustainability in India.
In Detail : The country’s biggest lender, State Bank of India (SBI), said that it will be signing a $165 million Line of Credit (LoC) from the World Bank in Delhi today to support grid-connected rooftop solar photovoltaic projects in residential and institutional sectors.
In September, SBI said that it plans to make home loans with rooftop solar installations mandatory for residential projects funded from the bank’s long-term climate action funds drawn down from multilateral agencies. The lender has outstanding forex loans of $2.3 billion from multilateral agencies, including the World Bank, the Asian Development Bank, and KfW of Germany.
SBI is planning to make it mandatory for builders to make rooftop solar installations if the project is funded from the bank’s green funds, said Ashwini Kumar Tewari, managing director in charge of international banking, information technology and associates and subsidiaries at SBI. Tewari added that SBI is planning to make it a bundled deal for home loan applicants in the coming years.
Tiwari also said that SBI is raising its exposure to green initiatives, including funding green buildings, battery recycling, and solar rooftop plans, among others.
On December 21, SBI announced it is signing Rs 1,800 crore in LoC with the European Investment Bank (EIB) to support climate action projects in the country. On December 14, SBI signed Rs 630 crore in LoC with German Development Bank KfW to promote solar projects in India.
SBI registered a 9.13 per cent growth in consolidated net profit in the September quarter to Rs 16,099.58 crore as against Rs 14,752 crore in the year-ago period.
